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Redwood Capital BancorpRWCB 61 5-Year Yield-on-Cost % is 1.45 as of Jul. 31, 2026, which is 14% below its 10-year median of 1.69. GuruFocus rates RWCB with a GF Score™ of 61/100 and a GF Value™ of $23.74 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,251 Banks companies, Redwood Capital Bancorp ranks worse than 88.65% on this metric.
Redwood Capital Bancorp (OTCPK:RWCB) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Redwood Capital Bancorp 5-Year Yield-on-Cost % Related Terms
RWCB vs CEFC, HLFN, FFBW: 5-Year Yield-on-Cost % Comparison
For the Banks - Regional subindustry, Redwood Capital Bancorp's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Redwood Capital Bancorp 5-Year Yield-on-Cost % vs Banks Industry
For the Banks industry and Financial Services sector, Redwood Capital Bancorp's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Redwood Capital Bancorp's 5-Year Yield-on-Cost % falls into.
Redwood Capital Bancorp 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Redwood Capital Bancorp (RWCB) has a 5-Year Yield-on-Cost % of 1.45 as of Jul. 31, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Redwood Capital Bancorp and its competitors. This is 14% below median its historical median of 1.69. Over the past decade, Redwood Capital Bancorp's 5-Year Yield-on-Cost % has ranged from 0.52 to 2.00. According to the industry distribution chart, Redwood Capital Bancorp ranks #1109 out of 1251 companies in the Banks industry, placing it in the top 88.6%.
Is Redwood Capital Bancorp's 5-Year Yield-on-Cost % too high?
Redwood Capital Bancorp's current 5-Year Yield-on-Cost % of 1.45 is 14% below median its 10-year median of 1.69. Over the past 10 years, this metric has ranged from a low of 0.52 to a high of 2.00. The Banks industry median 5-Year Yield-on-Cost % is 3.84. Redwood Capital Bancorp's value of 1.45 is 62.2% below this industry median. Based on the distribution chart, Redwood Capital Bancorp ranks #1109 out of 1251 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Redwood Capital Bancorp has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Redwood Capital Bancorp's 5-Year Yield-on-Cost % compare to CEFC and HLFN?
According to the Banks industry distribution chart, Redwood Capital Bancorp ranks #1109 out of 1251 companies for 5-Year Yield-on-Cost %. This places Redwood Capital Bancorp in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.84. Redwood Capital Bancorp's value of 1.45 is 62.2% below this benchmark. Historically, Redwood Capital Bancorp's own 5-Year Yield-on-Cost % has ranged from 0.52 to 2.00 over the past decade. While the company's 10-year median is 1.69 vs. the industry median of 3.84, Redwood Capital Bancorp has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Banks company?
The median 5-Year Yield-on-Cost % among Banks companies is 3.84, based on 1,251 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Redwood Capital Bancorp's current 5-Year Yield-on-Cost % of 1.45 is 62.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Redwood Capital Bancorp and its competitors. For the Banks industry, the median 5-Year Yield-on-Cost % is 3.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Redwood Capital Bancorp's current 5-Year Yield-on-Cost % is 1.45, which is 14% below median its own 10-year median of 1.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Redwood Capital Bancorp stock overvalued right now?
Based on GuruFocus' analysis, Redwood Capital Bancorp (RWCB) is currently considered Significantly Overvalued. The stock's GF Value™ is $23.74, compared to a current price of $32.95 — trading 38.8% above its estimated fair value. The current 5-Year Yield-on-Cost % is 1.45, which is 14% below median its 10-year median of 1.69 and 62.2% below the Banks industry median of 3.84. Redwood Capital Bancorp's overall GF Score™ is 61/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Redwood Capital Bancorp (RWCB), the current 5-Year Yield-on-Cost % is 1.45 as of Jul. 31, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Redwood Capital Bancorp (RWCB) Overvalued in 2026?
Based on GuruFocus' analysis, Redwood Capital Bancorp stock appears to be overvalued.
The current stock price of $32.95 is trading 38.8% above its estimated GF Value™ of $23.74.
GuruFocus considers Redwood Capital Bancorp to be Significantly Overvalued.
Key valuation signals for RWCB:
5-Year Yield-on-Cost %: 1.45 (14% below median its 10-year median of 1.69)
GF Value™: $23.74 vs. price of $32.95 (38.8% above fair value)
Industry Position: 62.2% below the Banks median (#1109 of 1251)
No single metric tells the full story. See the RWCB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Redwood Capital Bancorp through its subsidiary provides various banking products and services. The company offers commercial, industrial, agricultural, residential and personal credit and other banking services through its branches located in Eureka, Fortuna, and Arcata, California. The Company has determined that its business is comprised of a single operating segment. Redwood Capital Bank has two branches in Eureka, one in Fortuna and one in Arcata, California.
61GF Score
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